Options market shows investor jitters as the stock market slips from record highs

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Traders work on the floor of the New York Stock Exchange.
NYSE

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Signs are piling up in the options market that investors have become increasingly nervous about the stock market's record-setting rally.

Just as the major averages refreshed their all-time highs Tuesday morning, traders scooped up hedges against losses particularly in the technology sector.

The market quickly rolled over and traded in the negative territory by midday. Investors were buying protection at a time when the market is set to wrap up 2020 with unexpectedly strong gains. As of Tuesday, the S&P 500 is up more than 15% this year.

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